Recently Berkshire Hathaway bought a 10 percent stake in a real estate company called Store Capital. Store Capital invests in single-tenant properties and has investments in commercial real estate in 48 states and over 1,750 properties. Such investments include the theater group AMC Entertainment, restaurant chain Applebee’s and Ashley Furniture as its biggest customers. Store Capital specializes in sale-leaseback transactions, where owners sell properties and lease them back, freeing up sale proceeds to invest elsewhere.
Store Captial said that Berkshire Hathaway spent $377.1 million on the investment, announced four days after Berkshire said it would invest up to 400 million for a 38.4 percent equity stake in Canadian Lender Home Capital and provide a $2 billion credit line.
“An investment in our company from one of history’s most admired investors represents a vote of confidence in our experienced leadership team,” Store Chief Executive Christopher Volk said in a statement. “Berkshire Hathaway’s investment solidly positions Store for continued growth, while adding measurably to our already strong financial position.”
Since the investment shares of Store rose by about 10 percent. The investment makes Berkshire Hathaway Store’s third-largest investor.